So we have mortgages based on lies that were not intendend for the purposes normally associated with mortgage lending. Now we’re learning that the legal processes necessary to carry out the securitization process was in many — perhaps even most — cases not actually followed. The transfer of property rights that lies at the basis of a form of security that has wrought massive destruction may never have happened, meaning that mortgage-based securities, which nearly brought down the financial system and triggered a near-depression that has ruined countless lives, may not technically exist.
–Evil as privation in the world of finance « An und für sich
If there is a better argument for capitalism not just as fundamentally amoral but fundamentally not a system at all…
(via champagnecandy)
To this day, no one really knows what those securitized mortgage instruments are worth… It’s a market completely divorced from the reality of the original collateral. It’s just composed of “something” and the prices people are willing to pay for the unknowable “something”. I’ve been thinking that was actually an extension of the Enron model of creating markets from anything… I wonder if that’s true?
Friday, October 15, 2010
Do The Securitized Mortgages Really Exist?
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